Hong Kong Special Administrative Region
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General information on Hong Kong’s development
Hong Kong, which is located at the South China Sea, the East Bank of the Pearl River, is made up of the Hong Kong Island, the Kowloon Island and the New Territory (which includes Dayushan Mountain and over 230 islands with different sizes). It is adjacent to Shenzhen in the North with the Shenzhen River as the border separation line. It is only 60 kilometers to Macau, which is located right in its west and separated by the South China Sea. The total area of Hong Kong is 1,092 square meters. The population is around 6.5 million with the majority of Chinese and around 3% of British and other nationalities. Hong Kong is one of the Special Administrative Region of China. It has been long famous with the reputation as the International Financial Center, the Business Trading Base and the Free Harbor, which brought it the beautiful names such as “the Pearl in the East” and the “Capital of Vigor”. According to statistics, in the first season of 2005, the GDP growth of Hong Kong was 6.2%, while in the second season, the growth rate kept achieved the level of 7.3%. Surprisingly, the GDP growth in the third season reached as high as 8.2%. At the beginning of the last season, a lot of surprised academic research institutes readjusted the annual GDP growth at 7% with great excitement. This number is 1.5~2.5% higher than expected.
Since its return to China in 1997, Hong Kong’ economy has been in the gloomy situation for six long years. At the end of 2004, the situation was finally turned over. The economy began to re-bounce with the exciting growth of 8.2%. Despite the high starting foundations, Hong Kong’s economy this year is still able to achieve the touching “Hong Kong Growth” with the recognition of the strong extension of its economic growth.
In general, the economic growth in 2005 is the comprehensive effects from the harmonious interaction among consumption, investment and export. The Hong Kong economy is undergoing the steady and in-depth sustainable development.
The Hong Kong real estate market was resuscitated in 2004 following the good news of land purchasing cases. Conclusion of business on both new houses and second-hand houses selling were upbeat and exciting. At the same time, the price for luxury houses reached the highest level, which further solidified the real estate market situation.
According to the statistics issued by Hong Kong Land Registry Department, the real estate market in 2004 raised significantly. The number of conclusion cases on real estate business was over 123,480 with a growth of 41% compared to the same period of time in 2003. The total capital involved was around 35.17 million Hong Kong Dollars with a growth of 86% on contrast with the situation in 2003. Both the two numbers renew the records in history since 1997.
According to official statistics issued by Jones Lang LaSalle, the prices of mediate and small residential housing increased 35.3%, while the price of luxury housing witnessed a distinct scale of a growth of 62.2%. Some particular villa price even trumped the highest price since 1997. As it was pointed out by Liu Jiahui, the Chief Analyst of Midland Realty, Hong Kong real estate market has been recovering since 2004. The number of business conclusions set the new record since 1997. The situation in second-hand housing market was particularly representative with the average business conclusion number at 6,389 monthly.
As it is pointed out in the first season report of the Hong Kong Monetary Authority, though the housing prices re-bounced quickly since 2003, the risk of real estate market bubbles was still very low. However, considering the growing number of business conclusion continuously and the changeable market situation in real estate industry, it was still necessary to pay close attention on the market development. The Authority also pointed out that “Purchase Confirmer Conclusion” usually means those business conclusions that have been transited to the second buyer before the confirmation of the original trade. It is with a big possibility that those purchase confirmers are speculators sinking for short-term profits.
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